STOCK WATCH

In Banking, Dena Bank (Code No: 532121) (Rs.31.65) still looks good from the long term perspective. With the object to increase its Capital Adequacy Ratio to 12 per cent, it is coming out with an IPO early next year, which will be highly oversubscribed at the upper band of Rs27. It has a high NPA level of 8 per cent, which the management is trying to reduce drastically. At the same time, it enjoys the distinction of having the highest productivity per employee among PSU banks. As per RBI guidelines, the bank has shifted securities from AFS to HTM category, which will give some support to treasury income. For FY05, the bank may surprise the market with an EPS of Rs8. At Rs31 it is the best buy as it can give handsome returns to investors.

Natco Pharma (Code No: 524816) (Rs.138.15) has recently launched Curcumin 500 mg. capsules, which act as an essential food supplement especially for cancer patients. Curcumin is found to be effective in the treatment of multiple myeloma, tumours and other cancers. Few weeks back, it launched an anti-tumour capsule for the palliative treatment of metastatic / progressive carcinoma of the prostate. Earlier, it had also released Cantret capsules for the treatment of recurrent / persistent ovarian cancer. The company is now planning for a foothold in the international market as well. For FY05, it may report an EPS of Rs12. A good bet in the pharma sector

Uttam Galva (Code No:513216) (Rs.37.40) has an ambitious Rs350 cr. expansion plan for increasing the cold rolled capacity by 4,00,000 TPA, expanding its galvanising line with a capacity of 3,50,000 TPA and to set up a most modern state- of-art pre-painting line with a capacity of 60,000 MT. For the current first half, its sales was up 79 per cent to Rs1030 cr. and NP was Rs39 cr. For the full year FY05, it can easily report an EPS of Rs12. The best buy in the steel sector at current levels.

Orissa Sponge (Code No:504846) (Rs.47.80) has massive expansion plans and is increasing its sponge iron and steel billet capacity to 2,50,000 TPA each and has also obtained government approval for its iron ore mining lease. Due to the scarcity of scrap iron and the huge demand sponge iron, prices are expected to remain firm. For the current full year, it is expected to report an EPS of Rs10. Its share price can rise 50 per cent from current levels once the scrip catches market fancy.

Aggressive investors can have a look at B&A Plantation (Code No: 508136) (Rs.39) in the Tea sector as it is reportedly doing well. For the current first six months, its total revenue increased by 17 per cent to Rs27.50 cr. and NP spurted 175 per cent to Rs3.05 cr. posting an half yearly EPS of Rs10 on an equity of Rs3.10 cr. For the full year, it may post an EPS of Rs12. Its share price can rise smartly in future.